As the war involving the US, Israel and Iran drags on, two countries heavily dependent on Gulf energy, Iraq and Pakistan, have quietly reached separate arrangements with Tehran to keep oil and gas moving through the Strait of Hormuz. The deals, first reported by Reuters, show how much control Iran now holds over one of the world’s most important shipping routes. 

The Strait of Hormuz has long been one of the busiest energy corridors on the planet. Around a fifth of the world’s crude oil and LNG normally passes through it. But the conflict that erupted in late February has thrown global energy markets into chaos, slashing exports, disrupting shipping and sending fuel prices soaring. 

Iran had initially threatened to block the strait completely. But according to Reuters, citing analysts, Tehran appears to have changed strategy. Instead of shutting Hormuz down, it is trying to decide who gets access. “Iran has shifted from blocking Hormuz to controlling access to it … Hormuz is no longer a neutral transit route, it is a controlled corridor,” Claudio Steuer of the Oxford Institute for Energy Studies told Reuters. 

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Pakistan turns to Iran for LNG access : Report

Pakistan, meanwhile, has also secured passage for energy supplies after reaching a separate understanding with Tehran.

Two LNG tankers carrying gas from Qatar are currently headed toward Pakistan under the arrangement, according to Reuters. Pakistan normally receives around 10 LNG cargoes every month and is heavily reliant on Gulf imports, especially during the scorching summer months when electricity demand surges because of air conditioning and cooling needs.

According to the same report, neither Iraq nor Pakistan directly paid Iran or the Islamic Revolutionary Guard Corps (IRGC) for the transit approvals. Qatar was reportedly not directly involved in the deal itself, but sources said Doha informed the United States before the LNG shipments moved toward Pakistan. 

Lindsey Graham unloads on Pakistan

The development comes just hours after Republican Senator Lindsey Graham unloaded on Pakistan following reports that the country may have allowed Iran to park military aircraft at its bases

“I don’t trust Pakistan as far as I can throw them. If they actually do have Iranian aircraft parked in Pakistan bases to protect Iranian military assets, that tells me we should be looking maybe for somebody else to mediate. No wonder this damn thing is going nowhere,” Graham said.

Pakistan has been trying to position itself as a mediator during the crisis, but the reports and growing cooperation with Tehran are now likely to fuel further scrutiny in Washington. 

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Iraq secures safe passage for oil tankers 

According to sources familiar with the matter, Iraq struck a previously unreported arrangement with Iran that allowed two massive crude carriers carrying around 2 million barrels of oil each to safely cross the strait on Sunday.

Baghdad is now reportedly trying to secure approvals for more shipments as it scrambles to protect its economy. Oil revenues make up nearly 95% of Iraq’s budget, meaning any long-term disruption could hit the country hard.

“Iraq is a close ally of Iran, and any deterioration in Iraq’s economy would also damage Iran’s economic interests in the country,” an Iraqi oil ministry official said. 

Sources told Reuters that Iran has also asked Iraq to submit detailed paperwork for every tanker moving through the route. Iraqi officials are reportedly sharing information such as vessel ownership, cargo details, destination and shipping specifications with Iranian authorities so the ships can pass through designated maritime lanes overseen by Iran’s naval forces.